Jakarta (ANTARA News) - Edward Buckingham, the Executive Director of The Australian Centre for Financial Studies at Monash Business School Australia, believed that the financial technology, or fintech industry, is a form of economic revolution.
"Fintech is a form of revolution that serves as an opportunity for the Indonesian economy. There needs to be a discussion around its governance in business, so that it could be beneficial for the community," he stated during a discussion panel in the Merdeka Tower in Jakarta on Tuesday.
He further stated that the fintech industry in Indonesia is entering its first phase, which is why the development is yet to be predicted.
In this first phase, startup fintech companies are populating the peer-to-peer lending system.
"This is a huge opportunity for the Indonesian community, especially for those who work in the informal sector and who are yet to get loans from big banks," he explained.
He believed that Indonesia can look at India in terms of taking advantage of the emergence of fintech in relation to empowering the informal sector.
Buckingham stated that Indias Prime Minister Narendra Modi had been able to expand the peoples potentials, especially those who are yet to fully participate in the countrys formal economy scene, through the benefits of fintech.
"I believe that India and Indonesia can learn from each other," he stated.
Meanwhile, Deputy Commissioner of the Finance Services Agency Institute, Sukarela Batunanggar, remarked that the agency will continue to stay near the fintech business makers in the industrys development phase.
"The first step that we must develop is communication and observation. The next one would be the understanding that we gain. Finally, we must make reviews and formulate the regulations, including on how the policies will be applied generally in the future," he explained.
Regulatory measures not only come from the agencys side but also from other authorities.
"There are surely coordination and collaboration with other related entities, including the Bank of Indonesia, the Ministry of Communication and Informatics, as well as other instances," he concluded.
Source: ANTARA News